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Friday, 10 February 2012

How to preserve, market investment value of artwork, by experts

By Tajudeen Sowole

Juxtaposing collecting
art for passion with its investment prospect, director of Modern African Art, Bonhams
auction house, London, U.K, Giles Peppiatt, and stakeholders in Lagos, explore
the potentials of the domestic market for international investment.

Managing Director of Terra Kulture,
Bolanle Austen-Peters served as moderator.

Held at The Wheatbaker Hotel, Ikoyi, Lagos, the Forum also
enjoyed the support of the Lagos-based
Art Exchange Limited and Awakening Magazine.

In his
presentation, Peppiatt submitted that, art could be a good investment, but cautioned
that, “good judgement and fortune are both needed in equal measure.”

Arguing that Art
should not be “solely regarded as an investment,” he cited examples of works
sold at record prices across the world, but which were bought for enjoyment
derived from the aesthetics and not necessarily for investment.

Peppiatt stated: “For the long term, art
can be the best investment that a collector or individual can make. If astutely bought, correctly
maintained and properly sold, the returns will easily outstrip any other asset
class.”

Giles Peppiatt of Bonhams, speaking at the event, Art As an Alternative Investment? held in Lagos…
recently

While Peppiatt conservatively seemed to
have avoided exaggerating the investment prospect of art, he clearly
articulated the point that art is one of the safest security exchanges,
particularly in a recurring inflation economy.

If high
dividend of art is not in doubt, issues such as when to buy or sell as well as
which artist is in demand become pertinent.

Speaking from
experience, the visiting auctioneer disclosed that he always advised people to
“buy what you like, but I would also add: buy what you know about.”

And for those
who buy a piece of art for other reasons not necessarily because they liked it,
it could be a double loss. “If a work does not appreciate and you do not
especially like it, you have lost on both counts; you have an unloved and unsellable
work. So I repeat: buy what you like.”

Peppiatt cited example
of a piece, Slide 9 Gerard Sekoto, Women
in the Suburbs, bought at £10,000 in October 2000, but sold at £86,000 in
February 2007.

While making reference to
Bonhams’ Africa Now series auctions
that feature Nigerian artists, he advised that collectors should be able to
connect domestic sale with the global market.

“It is interesting to note that, for
example, world record for Ben Enwonwu’s five highest prices were set in the
Bonhams sales.” And as a new record has been set by Enwonwu’s Anyanwu, last November at Arthouse,
Lagos sales, Peppiatt asked: “How much would the bronze (Anyanwu) have fetched had it been offered on the international
market?”

The Lagos
auction, argued Peppiat, indicates that African art needs a thriving domestic
market to run in parallel terms with the international value.

While urging collectors to buy the best
“you can afford,” he also emphasised, “the very best works are never acquired
cheap.”

On why
collectors hold on to beloved work, Peppiatt reasoned, “when one is thinking
about ‘art as an investment,’ evidently you cannot have an investment that you
will not realise. Selling is important to prune and manage collections and this
has to be done through dispersals.”

He stressed
that it is also crucial for works to be released into the market to stimulate
collectors. “If collectors all hold onto the works too tightly, a market will
wither.Records are made when
collections are sold, not when they are bought.”

1.Chairman
of the event, Ambassador Arthur Mbanefo

EARLIER, the chairman of the event, himself a renowned collector,
Amb. Mbanefo seemed to have pre-empted the message in Peppiatt’s paper when he
disclosed that “many of us collect out of sentiments: for the aesthetics of
what we buy.”

Femi
Akinsanya, whose collection of traditional art was celebrated at the same
venue, a week earlier, with the launch of the book, Making History: The Femi Akinsanya Art Collection, and an
exhibition, stated that “it’s good to collect, and if you make money, good luck
to you.” He urged his compatriots to always “buy what you can afford.”

Folusho Philips, who has over 20 years
history of collecting art, spoke on the importance of documenting and artists’
skill.

Chief Yemisi Shyllon
urged collectors to extend the value of art to the larger community through
donation of works to museums and national gallery. On the investment value, the
founder of the Omooba Yemisi Shyllon
Art Foundation (OYASAF), commended
ArtHouse, Lagos, Bonhams and Philips de Pury (U.S.) and Terra Kulture, for
raising the value of African, particularly Nigerian art.

For the film
and broadcast manager and art enthusiast, Mrs Sandra Obiago, the potential of
Nigerian art has not been fully explored.

In an
emotion-laden presentation, she supported her argument with the remark from the
UNDP that emerging economies were yet to tap from the abundant opportunity in
the creative sectors.

Nigeria, she
lamented, is yet to realise the wealth in her creative sectors.

From the
audience, the painter, art teacher, Sam Ovraiti appeared to have removed the
lid from the bottled-grievance of his colleagues when he questioned the
criteria often adopted by auction houses in rating artists. He argued that the
value of an artist at auction should be based on creativity, and not the age or
many years of practice.

However, the response of some of the
discussants -- which drew a thin line between creativity and years of practice
-- seemed to be a global phenomenon, not peculiar to Nigeria alone.

All over the
world, said the discussants, art galleries, auctioneers, dealers and others set
the rules in the bipartite art market, which do not always favour the artists,
particularly the younger ones.

Perhaps, young
Nigerian artists need to consider the example of one of the Young British
Artists (YBE), Damien Hirst, whose auction at Sotheby’s in 2008 recorded the
highest sale for a solo artist in history at £111m. Hirst had disclosed that he took that bold step
because he was unhappy with the rules set by galleries and auction houses. His statements
that “If you don’t like the rules, change it,” is indeed an advice for young
artists across the world.

On the issue
of auction price as a benchmark for rating an artist, Mrs. Austen-Peters,
whose organisation operates auction and gallery, argued that such rating could
be deceptive. “Auction price is not necessarily the benchmark because people
who patronise the gallery most often cannot buy at auction price,” she
explained.

The issue of value for artist appeared to have overshadowed
other points raised at the forum, however, the co-ordinator of BEF, Oliver
Enwonwu, in his vote of thanks, remarked: “Can anyone really pay the price for
an artist’s soul; his work?”

5 comments:

Giles is a very greedy silly little man. He is getting himself into extremely hot water here. He is playing with the people who are destroying the Continent of Africa and is delighted to take their money. Never thinking where did that money come from? There shouldn't be a secondary market for African Art as there is no primary market yet established. There are no reputable Art Colleges throughout the Continent so it is ludicrous that he should be supporting such a sale. It will have the effect of bringing down the British Establishment and creating such damage to the Art World. He is putting the reputation of Bonhams Auctioneers on the line for a bunch of thieves from Nigeria. Good luck Peppiatt..I wouldn't want to be in your shoes this year.

I found this post very helpful indeed, a lot of good information can be garnered from this article. Indeed artwork is a great investment but the problem arises when the owner seeks to preserve the market investment value of the artwork, because there are so many factors that come into play. Thanks for this useful post.